The U.S. stock market opens at 9:15 a.m. Eastern Time on non-holiday days of business. The market closes at 4:45 p.m. with the exception of the half-day market for stocks. days. After-hours, as well as pre-market trades, are also accessible. These times are more volatile and are dominated by institutional investors.
This is what you must know about market hours in the stock market and how the time of the day will affect the way you trade.
- The regular hours for the stock market are Monday through Friday between 9:00 a.m.-4 p.m. Eastern Standard Time.
- The market for stocks is closed on the weekends, which means that trades can’t be executed until the following trading day.
- There are also holidays that occur on Wall Street, too! Keep track of the dates so you can determine when to trade.
- Trading during non-business hours can pose more risk due to volatility in prices, liquidity, and other inconsistencies in trading.
Background on the Major U.S. Stock Exchanges
The first and most important question is What You Should Know About Stock Market Trading? The stock market consists of companies and individuals who are involved in the trading and buying of stocks on the market. Stocks are traded on stock exchanges and these trades are analyzed by an index. Indexes like the New York Stock Exchange (NYSE) and the NASDAQ are among the most important indexes and stock exchanges in the United States.
While Wall Street in New York City is the center of investment in the United States, it’s important to keep in mind that worldwide exchanges function similarly.
What Time Does the Stock Market Open and Close?
The opening of the New York Stock Exchange ceremony is symbolized by what is known as the “opening bell.” It takes place at the beginning of the trading morning at 9:30 a.m. at EST.
Two bells are on the NYSE which are used to signal the beginning of the market. The first one is an automated one and the other is a real bell. The physical bell is utilized when businesses who are trading for the first are given the privilege of ringing the bell or any guests are in attendance and receive the honor to ring the bell as a ceremony.
Even though the NASDAQ trading floor does not actually exist, the question “what time does the stock market open?” is still provided by the bell that opens even though there are not any bells that ring there. The word is used to signal the start of a trading day.
It is also possible to ask when the market for stocks closes, and what happens when it closes. The NYSE as well as the NASDAQ close at 4 p.m. And the bell rings to signal the conclusion of the session every day.
New York Stock Exchange Hours
The NYSE like many other places has regular operating hours. These include:
- Standard Trading hours: Monday through Friday between 9:30 a.m.-4 p.m. Eastern Standard Time.
- Pre-Market Trading is available Monday through Friday between 8 and 9:30 a.m. Eastern Standard Time.
NASDAQ Stock Exchange Hours
The NASDAQ also has regular trading hours that include:
- Standard Trading Hours: Monday to Friday, from 9 a.m.-4 p.m. (EST).
- Pre-Market Trading: Monday to Friday, 8-9 a.m. (EST).
Although the majority of traders trade during normal hours There is a phenomenon known as pre-market trading. It takes place early in the morning, prior to the bells that start at 8 am. Unfortunately, traders who are able to trade during this time period have the most limited stock options that can drive prices up (think of it as demand and supply).
In some instances, companies may announce earnings prior to the bell ringing and witness a surge of activity before market hours. There are positive and negative aspects to pre-market trading according to the Securities and Exchange Commission (SEC) there are a variety of risks there that you must be aware of. These include:
- Insufficient capability to display quotations. Firms may only have one system through which quotes are viewed and they may not reflect the exact values. Therefore, when you trade it is possible that, not only rate not what you thought they were, but you might not be able to trade on quotes or even complete the trade in any way.
- Insufficient liquidity. During pre-market trading, there are some stocks that may be less popular, which could limit trading options for stocks you’re interested in. In the case of stocks that are traded in the market, there are fewer choices on the number of shares that are available which can lead to inconsistent results at the best.
- Quote spreads can be greater. With less volume the bid and ask prices might be higher than they normally are during normal trading hours restricting order execution and raising costs.
- Price fluctuation. Limited trading ability can result in price fluctuations that could be more than fluctuations that occur during normal trading hours, which isn’t much of an incentive to buyers.
- Prices that are not predictable. Stock market prices could not accurately reflect expenses of trading during regular hours.
- Orders with a limit. Electronic systems that accept only limited orders can cause orders to not be fulfilled, and you not take advantage of the chance.
- The computer can be affected by errors. Glitches during off times could result in a delay in completing or changing trades.
- competition. Larger institutions may have more information accessible to them than individuals have, which can give them an advantage when investing in these periods.
Many factors can be considered when you are learning What You Need To Know about Stock Market Investment. Before you even think about trading in pre-markets you should be educated to reduce time and minimize unnecessary risk.
Why Can Some People Trade on the Weekend?
If you have heard of people trading during weekends There are many possibilities for why:
- They trade Forex because of differences in time zones Forex markets are accessible 24 hours a day in various parts of the globe between the hours of 5:00 pm Eastern time on Sunday until 4:00 pm Eastern the following Friday. Again, however, Forex is not part of the stock market.
- They trade in cryptocurrency. Cryptocurrency is traded all day, every day, around the world. But, it isn’t an investment and is not an element of the market for stocks.
- They are traded on an exchange that international stock exchanges of various nations have their own trading hours, and they can fall on the U.S. weekend.
- The traders are trading on Friday evening after hours when you consider the happy hour that follows work on Friday as the beginning of the weekend it is possible to trade using their ECN up to 8:00 pm Eastern time.
Is the Stock Market Open on Weekends?
It would be reasonable to assume that with the capability to do almost everything online, you’d have the ability to trade stocks at weekends however this isn’t the case due to a number of reasons. One of them is:
- Traditional. Traditionally, before the introduction of technology stockbrokers weren’t able to work round all hours, and closing on weekends gave them the time off they required.
- Prepare for emergencies. In times of financial turmoil, weekends were utilized to avoid panic and focus on the issue.
While online investing is a possibility at any time, trading will not be completed until the time the bell opens. Therefore, for those looking to trade and thinking, when will the market officially open? Monday mornings at 9:30 am ET, with the bell that opens.
Can You Trade Stocks After Hours?
Similar to pre-market trading, you can also participate in extended-hours trading. It is available Monday through Friday, from 4-6 p.m. (EST) on both the New York Stock Exchange and the NASDAQ.
Similar to the issues with the trading of pre-market hours, after-hours trading is plagued by the same issues that are associated with the market’s volatility. Therefore, prior to participating it’s best to be aware of what you’re engaging in.
Engaging in post-market or after-hours trading might seem like an easier option. But, some of the issues that could be encountered make it unreliable at most. Trading during normal business hours provides you with security and peace of mind to purchase or trade stocks without fear while avoiding unnecessary risk.
What Happens If You Buy Stocks on the Weekend?
With the help of a variety of modern trading platforms, investors can make orders to purchase and sell stocks during the weekend. The problem is, that these trades will take place only after the market opens on Monday morning.
This creates a major chance for buyers and sellers, since the gap between bid and ask will expand over the course of the weekend which will result in a large spread and low liquidity when markets open.
- The bid price is the most expensive price a buyer can pay for a share of stock
- The price of an offer is the price that an offeror is willing to accept for the same amount of stock.
- spread the difference between the bid price and the asking price. A spread that is high can result in a lack of liquidity, whereas any spread won’t result in perfect liquidity.
Stock Market Holidays
As you’d imagine, the market closes on holidays, but only during normal trading hours. The holidays that affect the stock market are:
- New Years Day
- Martin Luther King Jr. Day
- President’s Day
- Good Friday
- Memorial Day
- Independence Day (July 4th)
- Labor Day
- Thanksgiving Day
- Christmas Day
There are also shorter working days for traders on the US stock exchange. These include:
- June 3rd- the day that precedes Independence Day – Trading runs between 9:30 a.m.-1 p.m. Eastern Standard Time.
- Black Friday — the Friday following Thanksgiving. Trading is open from 9:15 a.m.-1 p.m. Eastern Standard Time.
- Christmas: The trading hours are until 9:15 a.m.-1 p.m. Eastern Standard Time.
Tips for Trading on Weekends
The extreme volatility of the previous instance illustrates the risks of trading during the weekend. If the trader had made the trade during the market hours and the spread would probably be minimal and he would have been in a position to earn a profit of about 30 percent.
But, the fact that markets were closed on weekends gave the spread an opportunity to expand, which ultimately led the trader to make a loss. However, if you are planning to place trades on weekends There are a few good methods to be aware of:
- Limit orders can be set A limit order is one in which you’ll either buy or sell your stake in an investment “if and only if” you are able to exchange a particular quantity for a particular price. In the preceding example when he chose an order that was a limit instead of the market order and he traded his shares in company A just in case he was able to earn an amount of $ 13 per share. Limit orders are a way to “limit” the downside of the volatility of weekends.
- Only trade stocks with high volume low volume stocks are naturally more volatile than stocks with high volumes, which is heightened during the weekend. If you’re trying to sell off 1000 shares from the stock during the weekend, but it only has 15,000 shares of average daily trading volume getting a buyer to buy your stock could be a challenge.
Cryptocurrency Market Hours
It’s crucial to know that, in contrast to the stock market trading in cryptocurrency is available all day long, which makes it a little riskier due to fluctuations that may occur while you’re asleep. Because there’s no downtime, investors in cryptocurrency should develop a plan of action to help them.
The Bottom Line
The market for stocks comes with dangers, even on the most favorable day and in the pre-trading period, and even after hours of the market, the market can be more volatile, particularly when you’re not aware of the risks present.
Before you start trading, you might think about asking yourself when will the stock market open. It is also important to be aware of the times when markets close for the day because these are the ideal time to trade. There’s no guarantee that you will not take any risks, the point is that being aware of the times the market closes even during holidays could help you lessen the risk that comes with trading off-hours.